High Deductible Health Plans (HDHP) and Health Savings Account (HSA

What is an HDHP?

An HDHP, or High Deductible Health Plan, is a major-medical health benefit plan that has lower contributions than traditional health plans. Your HDHP:  Is a major-medical health plan that is HSA-compatible. That means it can be used with a health savings account from

Alegeus.  Has a higher annual deductible with lower monthly contributions, which means you’ll have less taken out of your paycheck and more to add to your HSA.  Covers 100% of preventive care, including annual physicals, immunizations, well-woman and well-child exams, and more – all without having to meet your deductible.

What is a Health Savings Account (HSA)?

An HSA, or health savings account, is a unique tax-advantaged account that you can use to pay for current or future High Deductible Health Plan (HDHP) healthcare expenses. With an HSA, you’ll have:

 A tax-advantaged savings account that you use to pay for eligible medical expenses as well as deductibles, coinsurance, prescriptions, vision and dental care.  Unused funds that will roll over year to year. There’s no “use or lose it” penalty.  Potential to build more savings through investing. You can choose from a variety of HSA self-directed investment options with no minimum balance required.  Additional retirement savings. After age 65, funds can be withdrawn for any purpose without penalty. How does an HDHP and an HSA work together for you?

 While paying lower contributions for your HDHP, you can put those savings into your HSA.  You can use your HSA funds to pay for eligible healthcare expenses until you meet your annual high deductible. If you enroll in the high deductible health plan, you can contribute pre-tax dollars to your health savings account up to the IRS annual maximum. Not paying taxes on these contributions can mean a savings of 15%-25% depending on your tax bracket. An HSA account is meant to help save for medical expenses not only this year but for the future. The money in the account rolls over every year and may gain interest. You may also choose to invest the funds in your account. Should you leave the company, you can take the account with you. The money is yours. The main requirement for opening an HSA is having a high-deductible health plan that meets IRS guidelines for the annual deductible and out-of-pocket maximum. To be an eligible individual and qualify for an HSA, you must also meet the following requirements.  You are not covered by a non-HDHP health plan (such as a spouse’s plan) or Medicare  You do not receive health benefits under TRICARE.  You have not received Veterans Administration (VA) benefits within the past three months.  You cannot be claimed as a dependent on another person’s tax return.  You are not covered by a general purpose health care flexible spending account (FSA) or health reimbursement account (HRA).

How do I sign up for an HSA Account?

You will be able to enroll in a health savings account via the online enrollment tool. TML has partnered with Alegeus. Keep in mind, the HSA is a bank account. There may be fees and investment options associated with the account.

Contributing to the HSA

You can start or stop contributions to your HSA at any time during the year. It’s important to remember to open the account as soon as your benefits are effective. You cannot use HSA funds for any expense incurred prior to opening your account. After making your initial contribution, you can use funds from the account to pay for any eligible expense. If you don’t have the money in the account at the time of service, use another form of payment and you can reimburse yourself later after adding money to your HSA account.

Employee Only Family

Catch Up Contribution (for those age 55+) *IRS Max includes employer contributions if any.

2021 IRS Max*

$3,600 $7,200

Additional $1,000

2022 IRS Max*

$3,650 $7,300